HMRC Warns Against Stamp Duty Rogue Agents: Stay Vigilant!
Following a recent Court of Appeal ruling, HMRC has announced a crackdown on fraudulent Stamp Duty repayment claims. Homebuyers are advised to avoid rogue agents touting misleading schemes that could result in significant penalties ... Stamp duty burden, Heavy tax on home buyers, Ouch, my wallet weeps As homeowners navigate the complexities of property purchases, it is crucial to understand the implications of Stamp Duty levies. Recent developments, particularly a landmark ruling by the Court of Appeal in the case of Mudan & Anor v HMRC, have put the spotlight on fraudulent practices concerning stamp duty claims. The ruling reaffirms that Stamp Duty Land Tax (SDLT) is chargeable on homes that retain the fundamental characteristics of a dwelling, regardless of their state of disrepair. Be careful of rogue agents!In recent months, rogue agents have proliferated in the marketplace, enticing unsuspecting homebuyers with promises of recovering substantial sums of Stamp Duty. They assert that by purchasing properties that are deemed uninhabitable, buyers can circumvent SDLT obligations. This tactic is not only misleading, but is likely to lead to long-term consequences. Following the Mudan case, where the appellants sought a hefty £99,750 repayment while asserting their newly purchased property was unsuitable for living, it has become increasingly clear that such claims are ill-advised. The Court's decision, articulated by Lord Justice Kim Lewison KC, underscored that properties with recent habitation, even if currently in poor condition, are still subject to Stamp Duty. Homebuyers should take note of the ramifications of these fraudulent claims, as HMRC has signalled its intent to tackle this emerging problem with both civil and criminal actions. Take, for instance, the scenario presented by HMRC involving a fictional purchaser of a £1.1m property in disrepair. The agent sought to claim a £9,250 refund on a ‘no win no fee' basis, leading to a reduced amount after the agent's cut. However, the purchaser found himself ensnared in compliance checks, at risk of repaying the entirety of the claimed refund, in addition to accruing interest and penalties. The agent vanished after getting their cut, leaving the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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If anything I've written in my blog post resonates with you and you'd like to discover more of my thoughts about Stamp Duty, rogue agents, or the habitability of a property you're thinking of purchasing, then do feel free to call me on 07434 287603 and let's see how I can help you. |
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